Auto loans are the second most common form of consumer debt in the US. Here is how car payments and loan balances break down by age group — and whether yours is typical.
Average Car Payment by Age Group
| Age Group | % With Auto Loan | Avg Monthly Payment | Avg Loan Balance |
|---|---|---|---|
| Under 35 | 42% | $532 | $22,800 |
| 35-44 | 46% | $565 | $24,600 |
| 45-54 | 44% | $548 | $23,200 |
| 55-64 | 38% | $510 | $20,400 |
| 65-74 | 27% | $465 | $17,100 |
| 75+ | 13% | $420 | $13,900 |
New vs. Used Car Payments (2026)
| Vehicle Type | Avg Monthly Payment | Avg Loan Amount | Avg Term |
|---|---|---|---|
| New vehicle | $735 | $40,200 | 68 months |
| Used vehicle | $524 | $26,800 | 67 months |
| Overall average | $570 | $33,000 | 68 months |
How Car Payments Have Changed
| Year | Avg New Car Payment | Avg Used Car Payment |
|---|---|---|
| 2019 | $554 | $391 |
| 2021 | $626 | $470 |
| 2023 | $726 | $516 |
| 2026 | $735 | $524 |
Auto Loan Statistics
| Metric | Value |
|---|---|
| Total US auto loan debt | $1.6 trillion |
| Average auto loan term | 68 months |
| % of new car buyers financing | 85% |
| Average interest rate (new) | 6.8% |
| Average interest rate (used) | 11.4% |
| % who are underwater on loan | 23% |
Is Your Car Payment Too High?
The 20/4/10 Rule
| Rule Component | Guideline |
|---|---|
| Down payment | At least 20% |
| Loan term | No longer than 4 years |
| Total transportation costs | Under 10% of gross income |
Payment as % of Take-Home Pay
| Monthly Take-Home | Max Recommended Car Payment (15% total transport) |
|---|---|
| $3,000 | $450 total (payment + insurance + gas) |
| $4,000 | $600 total |
| $5,000 | $750 total |
| $7,000 | $1,050 total |
How to Reduce Auto Debt Costs
| Strategy | Potential Savings |
|---|---|
| Buy used (2-3 years old) | Save $10,000-$15,000 vs. new |
| Put 20%+ down | Lower payment + avoid being underwater |
| Choose 48-month instead of 72-month | Less interest paid |
| Refinance existing loan | Lower rate can save $1,000-$3,000 |
| Pay off early | Eliminates interest on remaining balance |
Related: Average Debt by Age | Average Expenses by Age | Financial Milestones by Age
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